Dow closes more than 300 points higher, stocks snap 3-week Fed-induced slide

We think the S&P will end the year at 4,400, says Stifels Bannister

US stocks rose on Friday as Wall Street ended a strong weekly performance, recovering from a decline caused by the Federal Reserve.

The Dow Jones Industrial Average gained 425 points, or about 1.34%. The S&P 500 and Nasdaq Composite rose 1.61% and 2.05% respectively.

Shares of DocuSign rose more than 10% after the electronic contracts company reported earnings. The company also released a revenue forecast for the third quarter that was above expectations.

All three major averages are in the process of snapping a three-week losing streak. The Dow is up 2.84% on the week, while the S&500 is up 3.83% and the Nasdaq Composite is up 4.22%.

Stocks have been volatile recently as expectations for a 0.75 percentage point rate hike this month grew on Wall Street, after Federal Reserve Chairman Jerome Powell again said he is “strongly committed” to bringing down inflation.

“The case for the ongoing bear market is that the Fed will continue to tighten monetary policy, pulling liquidity out of the market and causing a tailspin for stocks,” says David Donabedian, chief investment officer at CIBC Private Wealth US. “However, this week’s market rally has shown that there is still resilience in the economy, bolstered by favorable economic reports.”

Still, Donabedian added that he doesn’t think stocks have hit the bottom of the bear market yet.

“In fact, the journey to the next bull market will take time, and will be marked by a series of setbacks and recoveries,” he said.

Source link

Back to top button